Government's First Supervision After Serious Accident Act Strongly Recommends Taeyoung Construction to Completely Rebuild Headquarters Safety System

First Supervision Case of Construction Company After Enactment of Serious Accident Punishment Act
Three Fatal Accidents Occurred in Q1 This Year...Highest Among Construction Companies
"Strong Recommendation to Rebuild Safety and Health Management System Including Workforce and Organization"
Fine of 204.5 Million KRW Imposed for Violations of Industrial Safety and Health Act
Government: "Taeyoung Construction Must Show Exemplary Safety Management with Complete Reform"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has strongly recommended Taeyoung Construction, which experienced three fatal accidents this year, to "rebuild its safety and health management system at the headquarters level." This announcement came after the first special inspection conducted following the enactment of the Serious Accidents Punishment Act, which will be enforced starting January next year. Since this investigation is not the end, it is highly likely that the strong inspection result stance of 'recommendation for a comprehensive review of the headquarters' safety system' will be maintained. The government reiterated its position that corporate executives who fail to properly establish safety management systems can be subject to 'punishment.'

On the 26th, the Ministry of Employment and Labor announced that the special inspection found Taeyoung Construction's headquarters to have an inadequate safety and health management system across overall management, including ▲leadership ▲safety management goals ▲personnel and organization ▲hazard management system ▲worker opinion collection ▲enhancement of subcontractors' safety capabilities. In particular, it pointed out that 'safety and health' was not included in the six key strategies of the mid- to long-term management plan through 2023. Regarding this, the ministry stated, "There is a lack of interest, strategy, and activities related to safety and health in the CEO's actions and management strategies," and added, "It is judged that a corporate culture prioritizing cost and quality over safety has been formed."

The Ministry of Employment and Labor said, "We strongly recommended Taeyoung Construction to prepare its own improvement plan that includes immediate and effective safety management measures such as increasing safety management personnel at the site." At a briefing, Kim Gyuseok, Director of the Industrial Accident Prevention and Compensation Policy Bureau at the ministry, explained, "The key is how much effort has been made in the safety and health management system, and this inspection result is at the consulting level." Kwon Kisup, Director of the Labor Policy Office at the ministry, said, "At this point, with the strengthening of the Occupational Safety and Health Act and the enforcement of the Serious Accidents Punishment Act approaching, Taeyoung Construction must comprehensively review and supplement its safety and health management system, including related organizations, personnel, goal setting, and evaluation."

The Ministry of Employment and Labor also reported that the mid-term inspection results of nationwide sites under Taeyoung Construction, ongoing since the 22nd of last month, confirmed that problems arose due to management policies neglecting safety. They cited evidence that the execution rate of industrial safety and health management expenses was only 89% as of last year, based on inspections focusing on the 'three core safety measures' of fall prevention, entrapment prevention, and wearing of personal protective equipment. Regarding this, the ministry stated, "The Ministry of Employment and Labor plans to conduct thorough investigations and take administrative and judicial actions on the issues detected during site inspections," and added, "Investigations are currently underway regarding the causes and legal violations at the sites where fatal accidents occurred."

Regarding violations of the Industrial Safety and Health Act detected during this headquarters inspection, the ministry announced that a fine of 204.5 million KRW was imposed. This was due to 59 violations, including failure to report industrial accidents, found at 35 sites. The ministry said, "Based on these inspection results, we recommended Taeyoung Construction to prepare its own improvement plan that includes immediate and effective safety management measures such as increasing safety management personnel at the sites," and added, "Once the improvement plan is established, the Seoul Regional Employment and Labor Office and the Korea Occupational Safety and Health Agency will conduct periodic follow-up inspections to verify compliance."

Director Kwon said, "Taking this headquarters inspection as an opportunity, I hope Taeyoung Construction will undergo a complete transformation and establish a safety and health management system, playing a leading role so that safety capabilities become a core value and an important competitive factor in the construction industry."

This content was produced with the assistance of AI translation services.